Judge close to deciding whether to approve Tribune Co. plan to emerge from bankruptcy

WILMINGTON, Del. – A federal judge in Delaware is close to deciding whether Tribune Co. can emerge from Chapter 11 bankruptcy protection.

The judge indicated after a hearing Friday that he would rule on the media conglomerate’s latest reorganization plan by early July.

Get weekly money news

Get expert insights, Q&A on markets, housing, inflation, and personal finance information delivered to you every Saturday.

Sign up for weekly money newsletter Sign Up

By providing your email address, you have read and agree to Global News' Terms and Conditions and Privacy Policy.

Tribune’s plan is a revision of a proposal rejected by the judge last year. It focuses on settling legal claims against lenders involved in a 2007 leveraged buyout led by billionaire Sam Zell. The transaction left Tribune saddled with unsustainable debt of almost $13 billion.

The plan would leave Tribune in the hands of an ownership group led by JPMorgan Chase, distressed debt specialist Angelo, Gordon & Co. and hedge fund Oaktree Capital Management. The plan would also allow creditors to pursue claims against shareholders who benefitted from the buyout.